Nestlé opens coffee manufacturing facility in Vietnam

Nestlé has opened a new manufacturing facility in Dong Nai, Vietnam, with an investment of CHF230m ($238m), to meet the increasing demand for its Nescafé soluble coffee products in the region.

The factory manufactures products for both domestic and export markets and has created more than 200 new jobs.

Nestlé Indochina chairman and chief executive officer Wayne England said that the company is investing in the future of coffee production and consumption in Vietnam and the region.

"By opening this factory in Vietnam, we will be closer to our consumers and better able to adapt our products to their needs and preferences."

"It demonstrates our long-term commitment to Vietnam and our continued confidence in the region," he added.

The project in Vietnam supports Nestlé’s activities around the Nescafé Plan, the company’s global initiative to optimise its coffee supply chain.

The initiative includes measures such as increasing direct purchasing from farmers and providing them with free technical assistance.

Nestlé launched the Nescafé Plan initiative in 2010, to ensure responsible farming, sourcing and consumption across its coffee supply chain.

As part of the programme, Nestlé trained over 19,600 coffee farmers in Vietnam in 2012 and the company plans to train about the same number of farmers this year, while distributing two million coffee plantlets.

In addition, the company is working with the Vietnamese Ministry of Agriculture and Rural Development in a public-private partnership in order to help farmers improve productivity by promoting better coffee growing practices.

Nestlé has been strengthening its presence in Asia over recent years, and earlier this week it started construction of a ready-to-drink beverages manufacturing facility in Shah Alam, Malaysia.

In June, the company announced plans to open two new facilities in China.

In May, it announced plans to upgrade its existing milk processing facility at Moga in Punjab, India, with an investment of Rs2.5bn ($45.4m).

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Image: Nestlé trained more than 19,600 coffee farmers in Vietnam in 2012. Photo courtesy of Nestlé.